Comparing Definitive Healthcare (NASDAQ:DH) and Sapiens International (NASDAQ:SPNS)

Definitive Healthcare (NASDAQ:DH) and Sapiens International (NASDAQ:SPNS) are both small-cap medical companies, but which is the superior business? We will contrast the two businesses based on the strength of their dividends, earnings, profitability, institutional ownership, analyst recommendations, valuation and risk.

Profitability

This table compares Definitive Healthcare and Sapiens International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Definitive Healthcare	-156.65%	0.98%	0.64%
Sapiens International	12.92%	17.60%	11.59%

Analyst Ratings

This is a breakdown of current recommendations and price targets for Definitive Healthcare and Sapiens International, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Definitive Healthcare	1	7	3	0	2.18
Sapiens International	1	0	2	0	2.33

Definitive Healthcare presently has a consensus target price of $5.81, indicating a potential upside of 22.63%. Sapiens International has a consensus target price of $41.67, indicating a potential upside of 16.23%. Given Definitive Healthcare’s higher possible upside, analysts clearly believe Definitive Healthcare is more favorable than Sapiens International.

Valuation and Earnings

This table compares Definitive Healthcare and Sapiens International”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Definitive Healthcare	$258.47 million	2.16	-$202.39 million	($1.75)	-2.71
Sapiens International	$532.61 million	3.71	$62.44 million	$1.17	30.64

Sapiens International has higher revenue and earnings than Definitive Healthcare. Definitive Healthcare is trading at a lower price-to-earnings ratio than Sapiens International, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Definitive Healthcare has a beta of 1.33, indicating that its stock price is 33% more volatile than the S&P 500. Comparatively, Sapiens International has a beta of 1.25, indicating that its stock price is 25% more volatile than the S&P 500.

Insider and Institutional Ownership

98.7% of Definitive Healthcare shares are held by institutional investors. Comparatively, 30.7% of Sapiens International shares are held by institutional investors. 14.8% of Definitive Healthcare shares are held by company insiders. Comparatively, 16.0% of Sapiens International shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

Sapiens International beats Definitive Healthcare on 10 of the 14 factors compared between the two stocks.

About Definitive Healthcare

Definitive Healthcare Corp., together with its subsidiaries, provides software as a service (SaaS) healthcare commercial intelligence platform in the United States and internationally. Its SaaS platform provides information on healthcare providers and their activities to help its customers from product development to go-to-market planning, and sales and marketing execution. The company's platform consists of various functional areas, such as sales, marketing, clinical research and product development, strategy, talent acquisition, and physician network management. It serves biopharmaceutical and medical device companies, healthcare information technology companies, and healthcare providers; and other diversified companies comprising staffing and commercial real estate firms, financial institutions, and other organizations in the healthcare ecosystem. Definitive Healthcare Corp. was founded in 2011 and is headquartered in Framingham, Massachusetts.

About Sapiens International

Sapiens International Corporation N.V. provides software solutions for the insurance industry in North America, the United Kingdom, Europe, the Middle East, Africa, the Asia Pacific, and internationally. The company provides various solutions for property and casualty commercial and personal lines, life and pensions, and reinsurance fields. It offers IDITSuite, an AI powered, end-to-end insurance software; DigitalSuite, a cloud-native, future-proof digital engagement platform; IDITGo, a pre-configured, data-enriched insurance launch and accelerator platform solutions; consultancy services for property and casualty commercial lines; and Tia Enterprise solution for customer engagement. The company also provides CoreSuite, an end-to-end cloud and digital PAS for individual and group products across life, health, wealth, and pensions; CustomerConnect, a dynamic self-service and persona-based portal to engage with insureds; AgentConnect, a portal for agents and brokers to focus on sales enablement, customer retention, and increasing customer value; and ReinsuranceMaster, a reinsurance automation software that provides insurers full financial control and flexibility over their entire reinsurance process. The company was founded in 1982 and is headquartered in Holon, Israel.